The Pound strengthened against all of its most traded peers after the Bank of England declared that the UK’s economic recovery is at last underway as unemployment fell to its lowest level since 2009 and as the number of people claiming job seeker benefits fell more than forecast.
The figures released by the Office for National Statistics showed that the number of job benefit claimants fell by 41,700 in October and the joblessness rate fell for a 12th consecutive month. The data caused the Bank of England to improve its forecasts for the UK economy and brought forward the date in which it expects unemployment to reach its target of 7%.
“In the United Kingdom, recovery has finally taken hold. The economy is growing robustly as lifting uncertainty and thawing credit conditions start to unlock pent-up demand.
But significant headwinds — both at home and abroad — remain, and there is a long way to go before the aftermath of the financial crisis has cleared and economic conditions normalise. That underpins the Monetary Policy Committee’s intention to maintain the exceptionally stimulative stance of monetary policy until there has been a substantial reduction in the degree of economic slack.
The pace at which that slack is eroded, and the durability of the recovery, will depend on the extent to which productivity picks up alongside demand. Productivity growth has risen in recent quarters, although unemployment has fallen by slightly more than expected on the back of strong output growth,” said the Bank of England’s report which was published after the jobs data was released.
The Pound is likely to make further gains tomorrow as economists expect tomorrows plethora of Eurozone GDP data reports to come in weaker and the UK’s retail sales data to show further signs that the UK economy is continuing to improve.
Current Pound Sterling (GBP) Exchange Rates:
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The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.5951 >
The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.1886 >
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.7168 >
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9410 >
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6296 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8411 <
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5824 <
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5150 <
(As of 11:20 am GMT)
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